> In regardes to DMC.
> Your research maybe correct. A couple of questions I have, where have you >seen their product? Do you know the pricipal behind the produt and how it >actually works?

My response is as follows:

Yes, I have seen the ‘product’–at least I have seen hundred dollar bills, which supposedly use the same technology as the product (this is the case that invalidated the company’s patents in the US: http://sec.edgar-online.com/2005/03/31/0001167687-05-000022/Section2.asp

I have read the patents and understand the principles behind the products–simply put, watermarks in the document create moire patterns when it is scanned. As far as the services and products the company actually sells, they are legitimate and probably useful. The only problem is that if the company loses its European patent lawsuits it will have no patent protection whatsoever and anyone will be able to sell identical products and no one will pay licensing fees.

See the relevant patents at the USPO:
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=69&f=G&l=50&d=PTXT&p=1&p=2&S1=5,018,767&OS=5,018,767&RS=5,018,767
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=47&f=G&l=50&d=PTXT&p=1&p=1&S1=5,193,853&OS=5,193,853&RS=5,193,853

1. As always, I disclose when I am short or long a stock about which I write. You can see right above, at the end of my article, I say that I am short.

2. My only association with Asensio is that I read his website Asensio.com (which, by the way, he claims to no longer be involved with).

3. I saw the press release by CCM and the link to the research was in there. I looked at their other research on their website.

4. To do naked shorting, a person has to have the consent/cooperation of their broker or clearing firm. I use Interactive Brokers (and they have their own clearing firm) and they have never been accused of abetting naked shorting. Anyhow, DMC is not on the Reg SHO threshold list, indicating that it has not likely been a target of naked shorting.

5. I have no clue about impending contracts.

6. To my knowledge there is no EU/DMC settlement nor will there be unless the ECB loses in more countries. I am still trying to get details on DMC’s win in Germany.